2018 Millennial Homebuyer Trends

  • Posted on: June 1, 2018
Millennial Homebuyer Trends

Across many different reports about homebuyer trends from 2017, Millennials are the largest share of homebuyers across generations at 36 percent. In addition, 65 percent of these buyers were first-time homebuyers. If you are new to the process of buying a home, check out our Buyer’s Guide for more information.

Let’s take a closer look at Millennial Homebuyers (1):

  • Born between 1980 and 1994 – Buyers 37 years and younger
  • 36% of all homebuyers – up from 34% last year
  • 65% were first-time homebuyers
  • 46% have student loan debt
  • 86% believe that buying a home is a good financial investment
  • 48% of buyers 37 years and younger now have children under the age of 18 in their home
  • 66% are married couples, and 15% are unmarried couples – the largest share of all generations
  • 80% are most likely to obtain mortgages (2)
  • 82% of Millennials think about owning their own home (2)
  • Desire to be a homeowner is still top of mind for many renters (2) – 55% of Millennial renters consider buying over renting
  • Urban areas favor among Millennials (2) – 43%

Why do Millennials want to own their own homes (2)?

  • They share their parents’ aspirations for a single-family home, often in the suburbs
  • 69% believe owning a home is an essential part of the American Dream – more so than any other generation
  • Sense of stability for themselves and their family – 53%
  • Plans for improvement – namely to paint interior – 31%
    • 25% intend to make kitchen improvements within the next year
    • 32% – landscaping is on the horizon
    • 58% take on DIY home improvement projects – 9 in 10 turn to social media for home improvement inspiration

What factors affect the buying decision for Millennials (2)?

  • 81% desire a home close to work
  • 72% prefer to be close to family and friends
  • Most likely to desire and list easy access to public transportation as a requirement when buying – 24%, compared with 18% of total buyers
  • 87% consider a single-family home
  • 34% require home be in their preferred school district
  • Desire to be involved in their community/neighborhood – 48% play an active role now

Are you thinking about purchasing a home? Homestar makes the home loan process easy! We will work with you to determine the right loan that fits your needs. Contact us today for more information.

Sources:

  • (1) National Association of Realtors, Homebuyer and Seller Generational Trends Report, 2018
  • (2) Zillow Group, Consumer Housing Trends Report, 2017 and 2016